North Carolina Down Payment Assistance Programs

Online Merchant account - The North Carolina Housing Finance Agency has two amazing programs for First Time Home Buyers. These systems will be the Mortgage Credit Certificate as well as the Down Payment Assistance Program.

If you qualify for one of those programs and you buy a home between December 1, 2009 and January 1, 2009, you may also be eligible for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.

First, who is a first-time Home Buyer? There is a First Time Home Buyer someone who has not owned a house in the previous three years. That is precisely the same qualifying definition for the $8,000 tax credit.

All home owners can claim an itemized deduction for mortgage interest. The MCC takes this a step further. An MCC “reduces your tax liability according to a share of the mortgage interest that you pay.

In case you are eligible for the MCC, you are able to claim 20% of the interest you pay on your own mortgage as a credit on your own federal income taxes. You are able to save as much as $2,000 on your taxes.

You'll find a way to combine this should you qualify for the MCC, for 2009. This might reduce the tax liability of a buyer's .

Who Qualifies for an MCC?

Who qualifies for an MCC is based on your own income along with the price of the property you are buying. Household income means the “gross income of the mortgagor and every other person anticipated to reside in the home who's 18 years of age or older.”

The income and house price limits that apply in Durham, Orange and Chatham Counties are given below.

MCC Income Limits 1 Person $61,500 2 Individuals $61,500 3 Individuals $70,500 4 Individuals $70,500

MCC Sales Cost Limits New Home $220,000 Existing Dwelling $210,000

Who Qualifies for Down Payment Help?

Home buyers that need help with their down payment and closing costs might be able to get down payment assistance - or, quite simply, interest-free, deferred second mortgages up to $8,000. The buyer just has to pay $1,000 of their own funds and the load would pay as much as $8,000 of the remaining balance.

This plan has more rigorous income limitations than the MCC plan outlined above. Like the MCC program, it could be used together with all the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The deposit assistance, however, cannot be utilized in combination with the MCC. That is an either or scenario.

House price limitations that apply in Durham Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limits

1 Individual $39,950 2 Individuals $45,650 3 Men $51,350 4 Persons $57,050

Down Payment Assistance Sales Price Limits New Dwelling $210,000 Existing Home $210,000